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Contract Law - Counter-offers and requests for flexible payment arrangements Counter-offer refers to the offeree's attempt to introduce new terms in response to the offer. A counter-offer ends an offer, preventing the offeree from accepting it. Accepting a new counter-offer can result in a binding contract with the intended recipient.
Key term: counter-offer
A counter-offer is a reaction to an offer that includes new stipulations. A counter-offer destroys the initial offer and cannot be accepted by the person who made it. Put your knowledge to the test and attempt. Use example
Mona offers Pasha a car for sale for £1,000. Pasha offers Mona £800 instead of £1,000 for the automobile. The following day, Pasha accepts Mona’s offer to buy the car for £1,000. Is there a legally enforceable contract between Mona and Pasha? The answer is "no." Pasha’s counter-offer of £800 for the car negated Mona’s offer, making it impossible for Pasha to accept. It's vital to distinguish between a counter-offer and a request for flexible payment terms. The offeree may seek payment flexibility, such as paying for products or services over time or in installments. These communications are not counter-offers and do not terminate the offer.
Key term: request for flexibility in payment arrangements. A request for flexible payment terms is a response to an offer that asks whether the money can be paid in installments or later than specified. The original offer remains open for acceptance. Put your knowledge to the test and attempt. Practice Example 1.6.
James offers to sell gold to Greg for £1,000 per ounce. Greg inquires if James will accept payment in installments over 2 months. James offers to accept money in instalments over a two-month period. Greg informs James that he accepts his offer. Have James and Greg created a legally binding contract? The answer is yes. Greg asked James about flexible payment arrangements, which led him to accept James’ offer. 'Battle of the forms' The battle of the forms occurs when parties submit each other their usual business terms, hoping to persuade the other party to use the first party's terms. When it comes to the battle of the forms, 'the last shot' usually wins. The contract shall be governed by the most recent business terms communicated by one party to the other before the latter begins fulfilling their responsibilities.
Key term: counter-offer
A counter-offer is a reaction to an offer that includes new stipulations. A counter-offer destroys the initial offer and cannot be accepted by the person who made it. Put your knowledge to the test and attempt. Use example
Mona offers Pasha a car for sale for £1,000. Pasha offers Mona £800 instead of £1,000 for the automobile. The following day, Pasha accepts Mona’s offer to buy the car for £1,000. Is there a legally enforceable contract between Mona and Pasha? The answer is "no." Pasha’s counter-offer of £800 for the car negated Mona’s offer, making it impossible for Pasha to accept. It's vital to distinguish between a counter-offer and a request for flexible payment terms. The offeree may seek payment flexibility, such as paying for products or services over time or in installments. These communications are not counter-offers and do not terminate the offer.
Key term: request for flexibility in payment arrangements. A request for flexible payment terms is a response to an offer that asks whether the money can be paid in installments or later than specified. The original offer remains open for acceptance. Put your knowledge to the test and attempt. Practice Example 1.6.
James offers to sell gold to Greg for £1,000 per ounce. Greg inquires if James will accept payment in installments over 2 months. James offers to accept money in instalments over a two-month period. Greg informs James that he accepts his offer. Have James and Greg created a legally binding contract? The answer is yes. Greg asked James about flexible payment arrangements, which led him to accept James’ offer. 'Battle of the forms' The battle of the forms occurs when parties submit each other their usual business terms, hoping to persuade the other party to use the first party's terms. When it comes to the battle of the forms, 'the last shot' usually wins. The contract shall be governed by the most recent business terms communicated by one party to the other before the latter begins fulfilling their responsibilities.
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